Fayette County holds public hearing on proposed sale of Kanawha Falls PSD to West Virginia American Water as residents press for FEMA repairs and rate clarity

FAYETTE COUNTY, W.Va. — Fayette County commissioners held a public hearing on a proposal to dissolve the Kanawha Falls Public Service District (PSD) and transfer its water and wastewater assets and customers to West Virginia American Water, drawing hours of public comment about repair timelines, potential rate increases and local jobs.

The hearing, called to gather input from property owners and customers served by the Kanawha Falls PSD, focused on competing timelines and funding paths for repairing a washed-out sewer line at Hamilton Holler and on how sale proceeds and rate protections would be applied if the county accepts West Virginia American Water’s offer.

Why it matters: The PSD is facing a major sewer reconstruction estimated at roughly $22 million; FEMA may reimburse a substantial portion but could take a year to decide, PSD and federal representatives said. Residents warned that selling the system to a private utility could leave long-term rate and local-employment questions unresolved, while PSD leaders argued that federal and state grant paths could preserve lower costs if managed locally.

Commissioners opened the meeting by explaining that the commission voted in April 2025 to propose dissolution of the PSD contingent on a plan for acquisition of assets and customers by West Virginia American Water and that the public hearing was part of that legal process. Commissioners and staff summarized the options: (1) proceed with a negotiated sale and offset residential bills with funds from the buyer, (2) pursue FEMA and state funding and keep local control, or (3) regionalize sewer service while selling only the water system.

Several residents said they feared large rate increases and permanent loss of local control. “Once they’re in, it’s gonna be forever whether we like it or not,” resident Mike Smithson said, urging the commission to pause the decision and gather more rate-comparison data. Thomas Bass, another resident, said he was not overtly opposed but worried about post-sale increases and asked that any proceeds from a sale be invested “down the valley for the residents who actually paid for it.”

Andrew Flick, who identified himself as “president for Kanawha Falls” (PSD president), told commissioners that FEMA had told stakeholders the agency would likely need about a year to make reimbursement decisions if the PSD submitted a full package now. Flick urged the commissioners to consider separating the water and sewer transactions — selling the water system while regionalizing sewer — so FEMA-funded work at Hamilton Holler could proceed without a year-long delay to acquisition or review.

PSD staff and stakeholders described the Hamilton Holler sewer project as complex and interaction-dependent. Leslie Taylor of FEMA Region 4 said FEMA had committed design funding (about 75% of design costs) and that FEMA’s cost share for construction looked to be about $17 million; the remainder would come from the Infrastructure and Jobs Development Council (IJDC) and the Clean Water State Revolving Fund, she said. Taylor cautioned that FEMA’s review timeline and interagency consultations (for example with Fish and Wildlife) meant it could take about a year for FEMA to determine final funding and scope.

County commissioners and others noted differences in how quickly a private utility could act. Counsel and staff described West Virginia American Water’s offer as including a lump-sum payment intended to offset customer bills; commissioners said initial arithmetic showed the buyer’s proposal would not produce the $2.5 million in customer offsets originally discussed and that roughly $1 million could be absorbed as overhead unless terms were renegotiated. Commissioners said any deal would require further community engagement and must clear the West Virginia Public Service Commission before an acquisition is final.

PSD staff described short-term mitigation steps they had taken since the storm — chemical treatment, temporary tanks and filtering barriers — but said the system’s long-term fixes are capital-intensive. Residents repeatedly raised concerns about local jobs, saying field employees could be replaced by staff from Charleston over time if service is transferred to a larger utility. “Once these jobs leave the valley, they are not gonna come back,” Flick said.

Commission staff and PSD representatives also stressed limits on grant eligibility: a PSD labeled “distressed” cannot receive certain grants, while the sewer entity, which is not classified as failing, may remain eligible for low-interest loans and grants. Commissioners said the county had received an offer from West Virginia American Water that would cover Kanawha Falls water and seek to acquire some neighboring failing systems; the county attempted to probe whether American Water would accept only water assets while leaving wastewater regionalized, but the purchaser declined that narrower deal.

There was no formal vote on sale or dissolution at the hearing. The meeting closed after public comment and brief commissioner discussion; commissioners agreed to continue considering the proposal and engage counsel and community stakeholders on terms, timing and how any proceeds would be applied.

Looking ahead: Commissioners said they will continue to weigh FEMA timelines, PSC review and the buyer’s final offer. Community members asked the county to provide clearer, central sources of information about the proposal, the PSC investigation report, and how sale proceeds would be used if the county accepts an offer.